Why is real estate the most secured investment you can make?

While real estate is often considered relatively safe investment, It is essential to understand that all investments carry risks, and the safety of any investment depends on various factors.

  1. Tangible Asset: Real estate represents tangible assets such as land and buildings, which inherently have value. Unlike stocks or bonds, which are paper assets, real estate investments offer a physical asset that can be seen and touched.
  2. Historical Appreciation: Historically, real estate has shown appreciation over the long term, especially in growing markets and desirable locations. While there can be fluctuations in the short term, real estate values tend to increase over time, providing potential for capital appreciation.
  3. Income Generation: Real estate investments can generate regular income through rental payments from tenants. This income stream can provide a stable cash flow, which can be particularly attractive for income-oriented investors, such as retirees.
  4. Inflation Hedge: Real estate is often considered a hedge against inflation. As the cost of living increases, real estate values and rental income can also rise, helping to preserve purchasing power over time.
  5. Leverage Opportunities: Real estate investments often allow investors to use leverage, meaning they can purchase properties using borrowed funds. This leverage can amplify returns, as investors benefit from the appreciation of the entire property value while only investing a portion of their own money.
  6. Diversification: Real estate investments can diversify a portfolio by providing exposure to a different asset class compared to stocks, bonds, or commodities. Diversification can help reduce overall portfolio risk by spreading investments across different types of assets.
  7. Control Over Investment: Real estate investors have a degree of control over their investments, including property selection, management, and improvement. This control allows investors to make strategic decisions to enhance the value of their properties.
  8. Demand for Shelter: Real estate fulfills a basic human need for shelter, which means there is always demand for residential and commercial properties. This underlying demand can provide stability to real estate markets even during economic downturns.

At Forez 42 Lending LLC, we specialize in providing flexible real estate lending solutions for acquisition, renovation, and refinance purposes. As part of our commitment to your investment, we always securitize loans with real estate, holding the coveted 1st lien position on the collateral. To ensure proper documentation, a mortgage will be drawn to the borrower, and a lien will be diligently secured on the property through the assistance of a reputable title company and recorded with the county.

Our lending model revolves around maintaining a conservative loan-to-value (LTV) ratio of under 65% on the after-completed value (ACV) of the real estate. This approach ensures optimal leverage for our investment while safeguarding against potential market fluctuations. We conduct thorough credit assessments on each borrower to evaluate their eligibility for the loan. Furthermore, our loans do not exceed a 12 months term where the borrowers has to payoff the note or engage into a new loan. Following these parameters allows Forez 42 Lending LLC to mitigate the the investment risk for our investors.

Forez 42 Lending LLC exercises discretion in lending funds to prospective borrowers, while adhering to our established guidelines. In return for your investment, you, as the investor, will receive a monthly payment based on your investment amount. Alternatively, the monthly interest payment can be reinvested into your fund instead of being repaid.

We appreciate your interest in investing with Forez 42 Lending LLC. We are committed to maintaining the highest standards of professionalism and delivering exceptional results. We look forward to a successful and mutually beneficial investment partnership.

Please fill out the Contact Us form if you are interested in learning more about our investment strategy.